SAN JOSE, California - In a sign that demand for computer chips isn’t slowing, Intel Corp. said Monday it will spend $3 billion to build a factory in Arizona and another $105 million to convert an inactive New Mexico plant into a temporary test facility.

The new microprocessor factory — known as a “fab” in the semiconductor industry — is expected to create up to 1,000 new Intel jobs over the next several years, the company said. Another 3,000 people are expected to be hired during its construction at the company’s site in Chandler, Ariz.

“This investment positions our manufacturing network for future growth to support our platform initiatives and will give us additional supply flexibility across a range of products,” said Intel CEO Paul Otellini.